Part shortage prompts GM Lansing Grand River Plant closure -- What happens next?
LANSING, Mich. (WILX) - General Motor’s Lansing Grand River Assembly and Stamping plant will shut down for at least a week.
The closure will begin April 4 and the plant is expected to resume April 11.
It’s a supply-chain shutdown, but it’s not due to the chip shortage. Experts said regardless of what part is causing the closure, it’s a problem Mid-Michigan will have to get used to.
“What happened is because of some disruptions in the supply base,” said Dr. Ravi Anupindi, with University of Michigan’s Ross School of Business.
Other experts said the main issues is limited parts and higher demands. The automaker cut orders when sales were slow and now that customers are coming back, they can’t get their parts orders increased.
“What you’ve got going on currently is limited capacity, excess demand,” said Dr. Steven Melnyk, with Michigan State University’s Broad College of Business. “It takes time to build capacity, so we’re not going to see anything change in the near future.”
Melnyk said the part shortage will continue unless companies find a way to know where products are, when and for how long.
“It’s going to become a really interesting situation,” Melnyk said. “Because we’re finding out we have very tightly integrated supply chains over which we have limited visibility.”
He added that companies like Toyota aren’t experiencing the issues because they planned ahead.
The plant is expected to reopen April 11.
Copyright 2022 WILX. All rights reserved.
Subscribe to our News 10 newsletter and receive the latest local news and weather straight to your email every morning.